Page 38 - GEORptDec17

Hahn added that he was aiming for the eventual abolition of the roaming tariffs. All three Eastern Partnership countries have signed association agreements with the EU that do away with trade tariffs for most commodities. However, telecommunications tariffs remain high. Starting in June, roaming tariffs were abolished within the EU; callers only pay domestic prices when calling from or to another EU country.
Hahn said that he was adopting a "step-by-step approach" to eliminating roaming tariffs in regard to the three countries, and that national governments also should engage with telecommunications operators to negotiate lower tariffs.
The EU's Eastern Partnership, a six-country body that also comprises of Azerbaijan, Armenia and Belarus, is due to hold its annual meeting on November 24 in Brussels. In a draft declaration to be signed at the event, the bloc commits to harmonising allocation and roaming prices for Eastern Partnership countries by 2020.
9.1.5 Health Care sector news
The Georgian medical system is on a steady path to development and London-listed Georgia Healthcare Group (GHG) is serving as its foremost representative, VTB Capital wrote in an analysis published on October 12.
Boasting market shares ranging from 20% to 35% across the hospital, pharmaceutical and medical insurance businesses, GHG is expected to see a near tripling of its profit in the next four years, the report reads. Since 2017 marks the end of capital expenditure-heavy investments for the group, the following years are expected to bring in higher profits. Therefore, VTB Capital recommends that investors buy GHG stock.
Since 2013, Georgia has offered basic universal healthcare to its population, though the state's contribution to healthcare spending at 40% is only half that of Russia's. Rising domestic incomes, coupled with medical tourism, are expected to boost the Georgian healthcare industry in the medium term.
GHG is poised to benefit from these trends. The group is vertically integrated, offering a one-stop-shop for patients. Furthermore, its wide network of hospitals is expected to expand by 18% by 2021. Coincidentally, hospital care is also the most profitable part of the business, posting a sustainable 30% EBITDA in recent years and accounting for 36% of 2017 revenues. Meanwhile, the base of medical insured patients is expected to increase by 75% by 2021, VTB Capital forecasts.
9.1.6 Tourism sector news
The number of tourists visiting Georgia increased by 28% y/y to 3mn in the first 10 months of the year, Giorgi Chogovadze, the head of the country's tourism agency, told agenda.ge on November 3.
Tourism receipts have also increased this year - by 26% y/y to $1.1bn in the first half, Chogovadze added.
38 GEORGIA Country Report December 2017 www.intellinews.com